Friday, February 18, 2011

In passing 2 separate pieces of legislation yesterday to repeal the 1099 tax filing requirement created in the Patient Protection and Affordable Care Act (PPACA), the House Ways and Means Committee quoted APTA on the effect the requirement would have on physical therapy practitioners and business owners.

"Small business issues directly affect many physical therapists, as owners of community based practices for physical therapy and rehabilitation. The expanded 1099 filing requirements as outlined in PPACA would present a significant burden on our physical therapy practitioners and business owners. Overcoming these obstacles will undoubtedly result in decreased efficiencies and/or increased costs for small businesses as they look to offset the new administrative burden. "

The Small Business Paperwork Mandate Elimination Act of 2011 (HR 4) and the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 705) would repeal the provision in the health care law that would compel businesses to file an Internal Revenue Service Form 1099 for all business transactions of $600 or greater in aggregate with the same entity for each given year. HR 705 also repeals an additional reporting requirement on owners of rental real estate and reduces improper overpayments of health care Exchange subsidies established under PPACA.

House leaders have announced that they intend to act on legislation this spring, as early as March. Last week, the Senate passed its version of 1099 repeal.